Q4 2018 Key Market Indicators – New South Wales

Solid economics
sustain New South Wales

New South Wales (NSW) has recently become much more welcoming for first
home buyers. In the June quarter 2018, the state achieved the gold award
nationally for the most improved number of first home buyer loans with a 68.8% increase over the past 12
months. It also achieved the silver award nationally for the highest number
of first home buyer loans (as of June quarter 2018) with7,252 such
loans issued. This has been driven in part by being the only state to not
decline in affordability over this period, helping it achieve the gold award
nationally for the most improved
home affordability loan index growth (as of June quarter 2018).Another notable achievement for NSW was winning the
gold award nationally for the highest
number of dwelling approvals (as of September 2018), making it a top
performer with 5,279 approvals. This rate was -16.7% softer than the period 12
months prior (September 2017), which is indicative of the cooling being
experienced within the wider property market, largely lead by Sydney. That said,
nett migration operated at a similar softer rate of -15.1% across the 12 months
prior to March 2018, which will lead to a balance in supply and demand. This
will achieve a more sustainable rate of property price growth in the long run.

NSW had a low unemployment rate of just 4.4% this
quarter, awarding it the silver award nationally for lowest unemployment rate (as of October 2018). This was an
improvement on the rate achieved 12 months prior, suggesting that employment
conditions remain strong. Further, the state won the bronze award nationally
for the highest median weekly family
income growth (as of June quarter 2018), at 2.4%. Combined with a low unemployment
rate, this places NSW as a leader in the market, with strong underlying
economic fundamentals.

The
PRDnationwide Q4 2018 Key Market Indicators provide a quick snapshot of the
current state of the market in Australia from both an economic and property
perspective. The Indicators cover both national and state level data,
comprising of: